No To Quick JP Morgan $1bn Payment

The New York Times reports that a US federal judge has thrown out JP Morgan Chase's request for the immediate payment of almost $1bn the firm says it is owed from 11 insurance companies in connection with its exposure to Enron.

The ruling was not unexpected and the case will now go to trial in December. JP Morgan is suing the insurers, who have refused to pay out under an insurance contract as they claim that the Wall Street firm's liability was not covered.

The uncertainty about the payment is no doubt effecting the firm's share price, which is down almost 40% this year. The firm is in the midst of a major redundancy exercise and a large influx of case from the insurers is sorely needed. It will allow chief executive Bill Harrison to maintain the dividend and may even save his bacon, at least for the time being.

Analysts still expect JP Morgan to settle before the case actually comes to court as the issues are so complex that they will be very difficult to explain to a jury.

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